@Brian Mathews   by starting out handling your own rentals you will gain the skills needed to know when your PM is not doing a good job.. instead of learning they are not doing a good job by very poor financial performance..

Hiring people that are experts where I am not, and compliment my skills are important. 

Purchase price $42k, estimated rehab + soft costs $18.5K, ARV (CMA) $130K, 6 month turnaround, great location, top notch school district.

If you could land other locations close by where the landlord might do TI or let you have the option to purchase at a preset price.Right of first refusal is pretty weak and only benefits the seller for the most part.Your chef needs to have a "soft open" for the business.

What do they offer, at what skill level, what services are included, and at what rate?

A good way to do this is to offer them a higher return than they invested for initially.Professional people such as doctors and dentists,or other skilled professionals have a tendency to invest in groups.

I am picturing using my current single-family deal finding skills to list and sell a few high-value commercial properties per year and collect some fat commission checks.

At this point, I strongly believe it is best to avoid dispute with tenant by having good management skill, inter-personal skills, leadership skill, good ethic, good judgment.I'm sure I will learn more lessons in the future.

Scenario #2 COC appears to be correct.Scenario #1$3720 / $19100= 19.5%Scenario #2$4248 / $17100= 25% That being said as I mentioned above, don't forget to add in any other out of pocket soft costs/repairs at purchase.

Soft costs are often paid out of pocket, investors might pay up but no lender does 100% of all costs.